Californian clothing store faces bankruptcy

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Californian clothing store faces bankruptcy

Hollie sports a PacSun t-shirt.

Hollie sports a PacSun t-shirt.

Drew Jackson

Hollie sports a PacSun t-shirt.

Drew Jackson

Drew Jackson

Hollie sports a PacSun t-shirt.

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Pacific Sunwear of California, Inc. also known as PacSun has been known for its laid back surf style, catering to mostly teenagers from coast to coast. After 36 years of being in retail and having 605 locations, PacSun has filed for bankruptcy. The reason? “The California lifestyle look [is] exploding on the scene and everybody [is] trying to get in on the action, and you look now at a Hollister, Abercrombie … American Eagle, and everybody is carrying the same look,” Gabriella Santaniello, analyst and founder of A-line Partners, said to Business Insider. The Wall Street Journal reported that the company has $160 million in debt and has had financial losses since 2008. Furthermore in 2011, PacSun had closed over 175 stores.

Hollie Quillen, sophomore, has been a frequent shopper at PacSun for four years. “It may affect me if the PacSun near me closes. I’ve been shopping there since middle school. It’ll be a shame,” she added. “I think [PacSun] hasn’t been as successful because some of their products are more expensive than they should be. A basic t-shirt will cost around twenty-five dollars.” However, Hollie will still continue to shop there.

Kristen Ringuette, sophomore, was shocked that her favorite store has filed for bankruptcy. “I didn’t even know about it. Most of my clothes come from there. I don’t go shopping much but it will affect me.” she said. “I know that there isn’t a lot of traffic coming through the store,” she continued, “I think it’s because of the prices.”

Roxy, Brandy Melville, Bullhead, Quicksilver, Diamond & Supply, Kendall & Kylie, are some of the most popular brands sold at PacSun. Wells Fargo settled to lend the Californian company as much as $100 million, according to Bloomberg. Gary Schoenfeld, CEO, stated “customers should not be affected by this restructuring process.”

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